BU352 CH.9 NOTES – PRODUCT,
BRANDING & PACKAGING DECISIONS
Terms & Concepts
Product Anything of value to a consumer. Can be offered through a voluntary marketing
Product Assortment The complete set of all products offered by a firm.
Product Lines Groups of associated items (ie. Those that consumers use together or thing of as
part of a group of similar products). Ex. Oral care, personal care, household care,
fabric care, etc.)
Product Category An assortment of items that the customer sees as reasonable substitutes for one
another. (ie. Toothpaste, whitening products, floss, oral first aid)
Brand The name, term, design, symbol, or any other features that identify one seller’s
good/service over others.
Product Line Aka variety. The # of product lines a firm offers.
Product Line Depth The # of categories w/n a product line. (Ie. W/n Colgate-Palmolive’s oral care
line, there are several categories: toothpaste, toothbrushes, kids’ products, etc.)
Stock Keeping Units Individual items w/n each product category. (ie. Colgate-Palmolive offers 49
(SKUs) Colgate SKUs w/n its toothpaste category that rep. various sizes, flavours and
configurations of Colgate Herbal White, Colgate Total, & Colgate Fresh
Category Depth The # of SKUs w/n a category.
Brand Equity The value of a brand. Set of assets & liabilities linked to a brand that add
to/subtract from the value provided by the product/service.
Brand Awareness Measures how many consumers in a market are familiar w/ the brand & what it
stands for. Created through repeated exposures of the various of brand elements
(brand name, logo, symbol, character, packaging, or slogan) in the firm’s
communications to consumers.
Perceived Value The relationship b/w a product’s/service’s benefits & its cost.
Brand Associations The mental links that consumers make b/w a brand & its key product attributes
(ie. a logo, slogan, or famous personality). Associations w/ specific attributes
help create differentiation b/w the brand & its competitors.
Brand Personality A set of human characteristics associated w/ a brand, which has symbolic/self-
expressive meanings for consumers. (ie. McDonald’s has created a fun-loving,
youth-oriented brand personality w/ its golden arches, brightly lit & coloured
restaurants, exciting & youthful packaging & advertising, and spokesperson &
mascot Ronald McDonald, the clown)
Brand Loyalty When a consumer buys the same brand’s product/service repeatedly over time
rather than buying from multiple suppliers w/n the same category.
Brand Ownership 3 types of strategies:
- Manufacturer brands (National Brands)
1 - Private-label Brands (Store Brands)
Manufacturer Aka National brands. Owned & managed by the manufacturer (ie. Nike, Marriott,
Brands Mountain Dew, etc.).
Allows manufacturers to:
- Retain more control over their marketing strategy
- Choose the appropriate market segments & positioning for the brand
- Build the brand :. Creating their own brand equity
Private-Label Aka Store brands. Brands developed & marketed by a retailer & available only
Brands from that retailer.
Generic A product sold w/o a brand name. typically in commodities markets. (ie.
Unbranded salt, grains, produce, meat, nuts, etc. in grocery stores)
Naming 3 strategies:
Brands/Product - Corporate/family brands
Lines - Corporate & Product line brands
- Individual brands
Corporate/Family The use of a firm’s own corporate name to brand all of its product lines &
Brands products. When all products are sold under one corporate/family brand,
individual brands benefit from the overall brand awareness associated w/ the
family name. (ex. Gap Stores – Gap, GapKids, babyGap, GapMaternity, GapBody)
Corporate and The use of a combo of family brand name & individual brand name to distinguish
Product Line Brands a firm’s products. (ie. Kelloggs – Corn Flakes, Froot Loops, Rice Krispies, Pop-
Tarts, Eggo, Cheez-It, Famous Amos, etc.)
Individual Brands The use of individual brand names for each of a firm’s products. Allows a
company to compete w/n one category offering a variety of products to different
target markets. If one brand experiences problems, other products w/ unique
brand names are protected from any –ve associations. (ie. Proctor & Gamble –
Cheer, Tide, Gain, Downy, Febreze, Bounty, Charmin, Olay, Old Spice, Secret,
Cover Girl) (ie. Loblaws operates under: Zehrs, Dominion, Extra Foods, No Frills,
Brand Extension The use of the same brand name for new products being introduced to the
same/new markets. (ie. Roots extending its brand from athletic clothes to
leather bags, yoga wear, & accessories)